Student Loan FAQ

RAP (Replacing SAVE) is the 2026 federal income-driven repayment plan that replaced the SAVE plan. Your payment is based on your income and family size: 5% of discretionary income for undergraduate loans and 10% for graduate loans. Any remaining balance is forgiven after 20–25 years of qualifying payments. Read the complete RAP guide →

ICR (Income-Contingent Repayment) is the only income-driven repayment plan available to Parent PLUS borrowers — but only after consolidating the Parent PLUS loans into a Direct Consolidation Loan. It uses 20% of your discretionary income, the highest rate among the IDR plans, so it is usually chosen when no other IDR plan fits your loan type.

Subsidized loans: the government pays the interest while you are in school, during the grace period, and during deferment. Unsubsidized loans: interest accrues from day one and capitalizes (you pay interest on interest) if you do not pay it. Use the Amortization calculator's loan-type selector and in-school simulator to see the difference.

PSLF forgiveness is tax-free at the federal level. IDR forgiveness (IBR, PAYE, ICR, RAP) may be treated as taxable income — federal and possibly state. This "tax bomb" can be substantial, so use the Tax Bomb calculator inside the 5-Plan Comparison tab. Insolvency under IRC 108 may reduce the liability. Compare IDR plans →

During deferment on subsidized loans, the government pays the interest. On unsubsidized loans, interest accrues. During forbearance, interest accrues on ALL loans and typically capitalizes when the period ends. Use the Amortization tab's deferment simulator to see the long-term cost.

NPV (Net Present Value) adjusts future payments to today's dollars. One dollar paid 20 years from now is worth less than one dollar today. A plan with lower total payments can still have a higher NPV if its payments are front-loaded. The 5-Plan Comparison shows the NPV for each plan side by side.

Yes. All calculations happen locally in your browser. No data is ever uploaded, collected, or shared, and there are no accounts or email sign-ups. Saved scenarios use your browser's localStorage and never leave your device. Privacy Policy →

For a fixed-rate federal loan, the Standard plan splits your balance plus interest into equal monthly payments over 10 years. The fastest way is our Amortization calculator, which builds the full payment schedule from your principal, rate, and term. Income-driven plans (RAP, IBR, PAYE, ICR) instead set payments as a percentage of your discretionary income — use the 5-Plan Compare tool to see every option side by side.

All three are income-driven, but they differ in rate and term. New IBR takes 10% of discretionary income with forgiveness after 20 years for new borrowers (25 for older borrowers). PAYE also takes 10% over 20 years but is closed to new borrowers who took loans on or after July 1, 2026. RAP, the 2026 replacement for SAVE, takes 5% of discretionary income for undergraduate loans and 10% for graduate loans, with forgiveness after 20–25 years. Compare the IDR plans →

Yes, but only through an indirect path. Parent PLUS loans are not directly eligible for PSLF or most IDR plans. You must first consolidate them into a Direct Consolidation Loan, which then makes them eligible for ICR (after 25 years) and, after consolidation, for PSLF (120 qualifying payments). Parent PLUS guide →

The Standard Repayment Plan is the default for federal loans: fixed monthly payments over 10 years (up to 30 years for consolidation loans). It has the highest monthly payment but the lowest total interest, and payments are not based on your income. Standard plan guide →

Refinancing federal loans into a private loan can lower your interest rate, but you permanently lose federal protections — income-driven repayment, PSLF, deferment and forbearance, and discharge benefits. Only refinance if you have stable income, an emergency fund, and no need for those safety nets. Refinance calculator → / pros and cons →

Most federal student loans have a 6-month grace period after you leave school before payments begin. Subsidized loans do not accrue interest during grace; unsubsidized loans do. PLUS loans have no grace period, though a separate 6-month post-enrollment deferment may apply. Grace period guide →

A Direct Consolidation Loan combines multiple federal loans into one loan with a single payment. The new rate is the weighted average of your existing rates, rounded up to the nearest 1/8%. Consolidation simplifies billing and is the required step to make Parent PLUS loans eligible for ICR and PSLF — but it does not lower your interest rate. Consolidation guide →

Your loan enters default after 270 days (about 9 months) of missed payments. Consequences include the full balance becoming due immediately, wage garnishment, loss of IDR and deferment eligibility, and credit damage. You can recover through loan rehabilitation (9 on-time payments) or consolidation. Default & rehabilitation →

Capitalized interest is unpaid interest added to your principal balance — so you then pay interest on that interest. It increases your debt during deferment, forbearance, and grace periods on unsubsidized loans. Paying interest as it accrues prevents capitalization. Capitalized interest guide →

The biggest reductions usually come from switching to an income-driven plan (RAP, IBR, PAYE, or ICR), which ties payments to your income and family size. Extending your term or consolidating can also lower payments. IDR often cuts payments dramatically for borrowers with lower incomes. Lower payments guide →

For the 2025–26 award year the rates are 6.39% undergraduate, 7.94% graduate, and 8.94% PLUS. For 2026–27 they are 6.52% undergraduate, 8.07% graduate, and 9.07% PLUS. Federal rates are fixed for the life of each loan. Interest rates guide →

PSLF forgives the remaining balance on Direct Loans after 120 qualifying monthly payments (10 years) while you work full-time for a qualifying government or nonprofit employer, on a qualifying repayment plan. Forgiveness is tax-free at the federal level. PSLF calculator → / PSLF beginner guide →

Federal student loans are always fixed-rate, so your payment never changes. Private refinance loans may offer variable rates that start lower but rise with market rates, adding long-term risk. Fixed rates give predictable payments and are usually safer for borrowers who value stability. Refinance pros & cons →